Who Pays for Arizona Termite Inspections in FHA Loans?

Stephen Proski
Stephen Proski
Published on July 18, 2018
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Warning: We’re about to give you the creeps.

It’s termite swarming season – that time of year when subterranean termite populations within colonies reach the carrying capacity and they swarm out in search of new digs. 

Although they may start out underground, a few strategically constructed and placed mud tubes will allow them entry into the home.

They can also gain access to the home through wood that is in contact with the soil. This includes porch steps and supports, doorframes, deck supports and more, according to the pros at Orkin.

Evidence of an infestation can throw a real estate transaction into turmoil. The homeowners may be clueless about it and it scares the daylights out of the buyer. So who pays for the Arizona termite inspections in the buying-selling process?

Termites aren’t a problem in many parts of the country, but if they are prevalent here in Arizona, you’ll naturally want to have the home inspected by a pest control expert before purchasing. If you’re using an FHA-backed loan, get to know its policies when it comes to pest inspections.

What FHA has to say about it

While some states, such as Nevada, require pest inspections, the FHA only requires borrowers to order a pest inspection under any the following circumstances:

  • If the FHA appraiser sees evidence of an active infestation.
  • If state or local jurisdictions mandate the practice
  • If wood destroying pest inspections are customary in your area
  • If the lender requests one

So, what does the inspector look for?

 

  • The mud tubes mentioned earlier are one indication of an infestation. For several reasons (access to a food source is one), termites construct these tubes from the soil to wood. Sometimes the inspector has no trouble finding mud tubes. Sometimes, they are hidden inside walls, behind the homes baseboards, under the floors and behind walls.  When buying or selling a home, one should always check out the entire property for evidence of termite tubes in Arizona.

Check out Orkin’s website to learn more about mud tubes and to see photos to help you identify them.

  • The inspector may check any wood structures on the property, such as fencing, wood mulch in the garden, firewood stacks and wooden structures.
  • Termite damage is a sure-fire sign of an infestation, so the inspector looks for evidence of such on wood surfaces, such as floors.

Who pays for the inspection?

Although FHA doesn’t care who pays for the inspection, and it is a negotiable item, whether the seller or the buyer traditionally pay for it varies by region.  In Arizona it is common for the buyers to pay for termite inspections.

Generally, when termites or evidence of termites exists with an Arizona home inspection, the buyer will ask the sellers to pay for an entire termite treatment of the property.

If, on the other hand, the lender demands an inspection, the buyer will typically pay for it. 

What if an infestation is found?

Termite reports are broken down into two parts, Section 1 and Section 2. The former includes a report of active infestation and damage — items that must be remedied now.

Section 2 items are those that may lead to an infestation in the future.

If you have any concerns about wood destroying pests in a home you are interested in purchasing, have the home inspected. The national average cost of the inspection is $537, according to homeadvisor.com.

The national average cost for termite treatment, however, varies according to the scope of the problem, the size of the home and other factors. Plan on paying between $500.00 and $1,200, according to costhelper.com.

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Who Pays for Arizona Termite Inspections in FHA Loans?
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